Last week the Rwanda OTC (ROTC) had bonds worth Rwf 300,000 traded in one transaction. According to information availed by ROTC officials, at the close of business, there were Rwf 2 billion worth of government bonds on offer (sellers) at Rwf 99.8 and two bids (buyers) of Rwf 2 billion and Rwf 5 million for the same bonds at 94.00 and 97.80, respectively. According to Pierre Celestin Rwabukumba, the Operations Manager at the Capital Markets Advisory Council (CMAC), the silence in the domestic Capital Market is an indirect reflection of the two major influences. ”The first is that traditionally January is a slow month for businesses as investors and companies are financially stretched coming from the holiday season,” he said. ”Secondly, it is a low moment for capital markets across the globe as the world reflects on the global recession and credit squeeze which started from the developed countries but is also slowly affecting emerging markets. Governments around the globe, especially in the western markets have cut interest rates in a bid to encourage lending to boost consumer spending as a way of counteracting the effects of the credit crunch,” he added. Ends
